Past several weekly COT reports showed Producer-Merchant category had been reducing gold short position by quite a bit; but not much on silver short position. Since this category use short position to hedge their inventory; apparently gold sales have been much better than silver. I am afraid gold-to-silver ratio will stay high for a while. By the way, Swap Dealers/Banksters have accumulated massive long position on gold; I expect to see gold rally in next January.
Per the latest COT numbers, the commercials dumped approx. 5000 shorts and added 2000 longs. I can't tell which type of commercials those are based on the print out (swaps or whatever). http://news.goldseek.com/COT/1450470749.php Jim
Cool! It'll mean silver will be even discounted relative to gold, great for those who seek to accumulate. Let it be so.
If we ever get back to a gold/silver ratio of 32 or so like we did briefly in 2011, I would probably sell half of my silver for gold. As much as I love silver, I really love gold. My first real PM purchase was a Krug back in early 2000's. Something about gold (in your hand) is hard to resist. I believe that someday over the rainbow when PM's do go back up in value, silver will gain on gold percentage wise and the ratio will tighten, just the opposite of it getting higher when PM's drop like we've been seeing. We could still see a higher GSR before PM's bottom. I would not be surprised to see low 80s which if I remember is about where the last GSR high got to. Maybe that will mark silver's bottom? Just my opinion. Jim
I don't understand - if you sold 1/2 your silver for gold, and gold dropped, wouldn't you be back to where you started? Thank you.
To make it as simple as possible with round numbers it would work like this. GSR of 30 so you swap 300 ozt of silver for 10 ozt of gold. The ratio goes back up like it has now and you swap that 10ozt of gold at the current ratio of 70/1 and that original 300 ozt of silver is now a whopping 700 ozt of silver. Rinse repeat and hopefully it keeps working for you
The end goal being that you expect silver to appreciate at some stage in your future and you sell for a profit